Bitcoin Eyeing $96.7K as On-Chain Demand Overtakes Leverage

Bitcoin (BTC) is currently trading around the $85,000 mark, with a significant sell wall between $85,000 and $85,500. This sell wall, identified by Glassnode, represents a cluster of resting sell orders that buyers must absorb before the price can rise further. Despite fading ETF inflows and low trading volume, the recent rally on October 4 lifted the weekly close about 2% higher than the previous week.

Glassnode's latest report highlights that leverage is cooling, while new on-chain money is driving the rally. The next major resistance level is identified at $96.7K, which is the mean Market Value to Realized Value (MVRV) price. The MVRV gauge compares Bitcoin’s market cap with the value of coins at the price they last moved, providing insight into holders’ standing against their cost basis.

Open interest in futures and options has slipped back into its normal range, indicating a reduction in leverage. However, Glassnode still rates futures as moderate and rising. On-chain activity, including active addresses, fees, and transfer volume, has risen above its high bands, suggesting strong demand from new capital. The hot capital share, which covers realized cap held in recently moved coins, has also risen significantly.

Short-term holder unrealized gains and realized profit-taking are well above their high bands, indicating that close to three quarters of supply is in profit. Glassnode described profit-taking as light on September 30, but the potential for increased selling pressure at resistance levels remains. If recent buyers continue to hold, the move toward $96.7K could be sustained by demand rather than borrowed money.